Posts Tagged ‘industrial output’

Indians Equities Gained a Meagre 14 Points this Week

Indians Equities Gained a Meagre 14 Points this Week

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A benchmark index of Indian equities gained a meagre 14 points this week from its last weekly close even as broader indices managed to move up significantly and foreign investors bought into a wide range of scrips.

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Trading this week was range-bound on most days, and brushed aside improved industrial output numbers.

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The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) rose 14.1 points or 0.08 percent to end Friday at 17,584.87 points, from its previous weekly close at 17,540.29 points.

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The broader S&P CNX Nifty of the National Stock Exchange (NSE) moved up 0.14 percent or 7.45 points from its last weekly close to end at 5,252.2 points.

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Broader market indices, however, reflected the buying interest in mid-to-small sized scrips as the BSE midcap index ended 1.5 percent up and the BSE smallcap index rose 3.14 percent.

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Data with markets watchdog Securities and Exchange Board of India (SEBI) showed that foreign funds were net buyers during the week, having bought scrips worth $981.55 million.

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According to Jagannadham Thunuguntla, the equity head for brokerage firm SMC Capitals, the benchmark indices will continue to see a lot of sideways movement, having rallied over 90 percent in a year.

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‘Such sideways movement is expected, and will be the norm for some time to come.

Positive economic numbers and encouraging corporate results will not always translate into gains in the market,’ said Thunuguntla.

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The week started on a lackluster note Monday, with the Sensex ending 13 points lower at 17,526.71 points due to profit booking in front line stocks — Reliance Industries, ICICI Bank, and SBI.

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The Nifty, which followed a similar trajectory to the BSE benchmark, managed to gain marginally at 5,249.4 points, a rise of 0.09 percent.

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The top gainers in the Sensex were TCS (up 13.1 percent), Wipro (up 10.2 percent), Infosys (up 8.6 percent), ACC (up 7.5 percent) and Ambuja Cements (up 6.9 percent).

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Among top losers were SBI (down 6.2 percent), Hindalco (down 3.9 percent), ICICI Bank (down 3.6 percent), Hindustan Unilever (down 3.6 percent) and Reliance Infra (down 3.3 percent).

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Indian Industry Expanded At A Fastest Rate in 25 Months :)

Indian Industry Expanded At A Fastest Rate in 25 Months

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India’s industrial output rose at a faster-than-expected 11.7 per cent in November  from a year earlier, due to stimulus-backed demand for manufactured goods, particularly consumer goods.

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Part of the industrial growth, measured by IIP is no doubt due to a low base of last year but it is mostly attributable to stimulus-driven demand.

Stimulus measures have boosted domestic demand for sure.

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However, industrial growth was just 2.5% in November 2008.

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India’s factory production in November was the fastest in 25 months, raising a debate on whether stimulus provided to spur the economy should continue.

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Meanwhile, manufactured goods, which have around 80% weight in the Index of Industrial Production, which measures industrial growth, grew by 12.7% in November 2009 compared to 2.7% in the same month a year ago.

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Within this category, consumer durable goods production expanded by 37.3% in the month against just 0.3% a year ago  while industrial output in Q1 of 2009-10 stood at 3.8% and in Q2 at 9.2%.

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Moreover, with better-than-expected performance in November,  industrial production in the first 2 months of Q3 now expanded at more than 10%, as it grew by 10.3% in October.

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As such, if the trend is maintained in December, industry would expand at faster pace in the third quarter.

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On the other hand, the continuous rise of industrial production gives enough hope that the recovery is on a firm footing.

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Though it is going to fuel the debate whether stimulus provided by the government to boost the economy should be withdrawn now or not.

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Market experts believe that with respect to stimulus, there could be some withdrawal on the indirect taxes side. This could be required to make up for the fiscal deficit.

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As part of stimulus, government had cut excise duty by six per cent and service tax by two per cent, besides stepping up Plan expenditure taking the total value of stimulus to Rs 1,86,000 crore.

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Morning News Capsules

Hello Friends, here, we bring you the latest updates from the Indian market and Industry.

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SMC Morning News Capsules

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NEWS CAPSULES

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• Backed by government stimulus measures and a low base effect,  growth in industrial output touched a two-year high in November 2009.

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The index of industrial production (IIP) grew 11.7 per cent, primarily due to growth in manufacturing (12.68 per cent in November as against 2.7 per cent last year),
fuelling a debate on withdrawal of fiscal and monetary stimulus measures.

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•  Maruti Suzuki, India’s largest manufacturer of passenger cars, launched Eeco, a multipurpose vehicle (MPV) in Ahmedabad.

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With Maruti Omni being largely used by the cargo segment, and the Versa failing to create a buzz in the market, the company needed to focus on the passenger side.

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Introduced in three variants at a price range of Rs 2.58-2.89 lakh, Eeco aims at fulfilling this gap.

Currently the company sells 550 Omni each month.

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•  Telecom major, Bharti Airtel, has announced that it has agreed to acquire 70% stake in Bangladesh-based, Warid Telecom.

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Bharti plans to make $300 million fresh investment in the company, thus taking the overall investment to $1 billion.

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The new funding will be for capacity expansion, coverage and innovative products.

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• FMCG major Dabur said it has tied up with a Belgium firm for technical collaboration to reduce carbon emissions in its plants and has invested Rs 5 crore for the purpose.

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The company said it is rolling out a host of initiatives at its various manufacturing facilities spread across India and Nepal to reduce carbon emissions and become more energy efficient.

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• Central electricity distribution firm PowerGrid would sign an agreement with Bangladesh later next month for setting up a transmission link with the neighboring country.

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Punj Lloyd has bagged orders worth Rs 947 crore from Ind-Barath Energy.

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The company informed that it has won an order for partial balance of plant and civil work on a two 350 MW thermal power project by Ind-Barath Energy, Orissa.

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• New Delhi Television (NDTV) has informed BSE that NDTV Worldwide, a NDTV Group company has entered into an agreement with Beximco Group, Bangladesh.

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The company would be providing consultancy to set tip and assist in the business management and operations of a 24-hour news and current affairs channel proposed to be launched in Bangladesh by Beximco Group.

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Infosys Technologies, India’s second-largest software services exporter, has reported a 3.6 per cent year-on-year (Y-o-Y) decline in net profit to Rs 1,582 crore for the third quarter ended December 31, 2009.

Total income, too, saw a decline of close to 1 per cent to Rs 5,741 crore.

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• Two – wheeler giant Bajaj Auto reported a smashing 189.24 per cent increase in its net profit at Rs 475.14 crore for the third quarter ended December 31, 2009.

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The company had a net profit of Rs 164.27 crore in the corresponding quarter a year ago.

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•  IT firm Mastek reported a 24.8 per cent decline in its net profit at Rs 23.54 crore for the quarter ended December 31, 2009.

It had a net profit of Rs 31.33 crore in the same period previous fiscal.

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Indian Corporates Pitched For a Cut in Interest Rates :)

Softer Interest Rate Regime

Stating that it was essential to maintain the growth momentum, India Inc described 6.8% rise in July industrial output as “evidence of recovery and pitched for a cut in interest rate.

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However, although performance in July has been lower than the previous month, vigorous increase in mining and manufacturing has kept up the level of industrial growth at a reasonable level of 6.8%.

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Additionally, it is said that the industrial economy is passing through a very important stage and FICCI has as a result advocated the need for a softer interest rate regime to assist the overall growth process and promote investments.

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“Although performance in July has been somewhat lower than the previous month…nevertheless robust growth in mining and manufacturing have kept up the level of industrial growth at a reasonable level of 6.8 per cent,” Ficci Secretary General Amit Mitra said in a statement.

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On the other hand, the RBI had cut reverse repo and repo rate by 25 basis points each in April whereas in June, the factory production was revised to 8.2% against 7.8% anticipated provisionally.

Moreover, Assocham stated that in future, the force of stimulus packages would also add on to the revival and India could move on to a close to 6.5% of GDP in the present financial year.

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Note : For More latest Industry,Market and Economy Updates Click Here

India Industrial Output Up 7.8% :) FDI Flows to Improve ;)

Indian Industrial output

India’s industrial output INIP=ECI rose by a much faster-than-expected 7.8 percent in June from a year earlier, data showed on Wednesday, driven by higher demand for consumer goods and increased mining activity.

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Industrial output rose for the third straight month and clocked its highest rate of expansion since February 2008.

June output was far better than expectations for a 3.3 percent rise, although economists warned that the rapid pace of industrial growth might not be sustainable despite other recent positive signals.

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Output of consumer durable goods such as home appliances rose 15.5 percent from a year earlier.

Though the deficient monsoon has created an uncertainty about the overall growth outlook, the industrial buoyancy at this pace is definitely a strong positive signal.

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There are signs the expansion in activity continued in July, with car sales rising by a blistering 31 percent. Society of Indian Automobile Manufacturers showed companies sold 115,067 cars during July, compared with 87,901 cars a year earlier.

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India’s manufacturing activity held steady in July, expanding for the fourth consecutive month, a survey by Markit Economics showed.

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But erratic monsoon rains could cloud demand in the economy.

With just over 40 percent of India’s agricultural land irrigated, farm output is heavily reliant on rains but below normal monsoon could potentially hurt rural demand, which accounts for more than half of India’s domestic consumption.

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